5 tips to save on monthly services

Although many do not believe it, one of the main sources of savings is in our home. A high water, electricity and telephone bill is something that we have to pay if we want to continue counting on the service, so getting the receipt to come for a few soles less is something that our pocket will appreciate.

Take these tips into account to save on the services you pay month by month and start healing your finances little by little:

Check your phone, cable and internet plan

money cash

If you have the most expensive trio of all, think about it: are you really using everything you’ve requested? Do you really need all those channels? If you already have internet, there are many free or less expensive options that you could choose to watch movies or shows. If you do not want to remove it, you can choose to reduce the cable to the basic plan and you will see the savings.

Do not stop charging the cell phone all night: The smartphone takes only a couple of hours to charge, but when left overnight, it is wasting energy in vain. Charge it during the day and then disconnect the charger.

Look for LED spotlights: It is true that at first it will seem an expense, because these types of accessories are more expensive, but as soon as you start using them, you will see the difference. The savings presented are between 50% and 80% less than the other sources.

Do not wash the dishes with running water. Put the detergent with the spout closed and once everyone is ready, rinse them together.

Use water that is not yet “hot”

water with money cash

When bathing or opening any pipe, while waiting for the water to reach the temperature you want, put it in a container and you can use it later, instead of letting it run.

All these recommendations or small “hacks” will help us save some soles on the monthly bill. But the really important thing is that you organize your budget and separate a percentage for savings. Compare the different account options and see where it is most convenient for you to save.

You asked, that is, the most important credit questions

Although our regular readers could slowly join us and write expert articles, there are still many who are unclear about a loan. Of course, there is no problem with that, because we are there to help and we do this in our personal communications. However, we thought that the most frequently asked questions and problems would be discussed here in the form of an article.


The “BAR list”


When they contact us, we are regularly asked if we can arrange a loan for the “BAR listers”. Well, this issue is now being clarified. It’s such that the BAR list no longer exists. It is currently called the KHR list, but it has roughly the same essence, that is, being on this negative debt rating list is not creditworthy at the moment. And we answered no. Those on this list cannot get credit from the banks.


I’ve been working recently

credit loan

We are also often asked in messages about how long they need to be in a declared employment relationship in order to be creditworthy. This is a very good question, because before that it really should have been at least 1 year. In fact, there were some banks that gave me a discount if we had a continuous job for an older hour. At present, however, the minimum condition is that we have 3 months’ employment and an indefinite contract.


What’s the best credit?


Well, this is the classic question we can’t answer. Maximum to ask: Which is the best car? Everyone is different. Because of its many components, credit is almost impossible to answer in advance. It depends on the different details of the property, our earnings, the maturity we choose and the interest period. This also shows that it is quite complex. However, what can help us get closer to the solution is the help of a professional and the calculator of the loan. That is why we strongly recommend both.

By and large, these are the questions that we see most often, which is what concerns us the most. We are still waiting for you to contact us! We strive to meet the highest standards and find the perfect solution for you.

How do corporate and retail lending stand in Hungary?

According to a recent survey of the MNB, 17% of Hungarian households plan to receive CSOK support, which could mean 272,000 transactions, taking into account all eligible persons, ie 1.6 million families. The awareness of CSOK is well over 90% of the population.

In addition, the Marble Bank’s publication, Lending Processes, shows that more and more SMEs in the SME sector are borrowing, which can be helped by loosening credit conditions.


What is Corporate Lending?

What is Corporate Lending?

According to the study, the SME loan portfolio increased by 3.4% between March 2015 and March 2016, while the decline in total corporate lending fell to 2.4%, which would be + 1% without MKB Bank’s portfolio cleaning.

In the first three months of the year, the dynamics of SME lending declined, reflecting, on the one hand, the amortization of former NHP loans and, on the other hand, changes in the terms of NHP lending.
Demand for short-term loans has picked up due to easing lending conditions in corporate lending, which is expected to pick up in investment loans in the next six months, particularly among smaller companies, due to plans to loosen credit institutions.


What’s New on the Retail Lending Front?

Retail Lending Front

Under conditions of unchanged credit supply and growing demand, the volume of new household loan agreements increased by 23% year-on-year, within which the volume of home loan loans increased by 36%. The majority of banks expect further growth in demand for household loans, which they believe is supported by the CSOK.
This year, the mortgage loan market will be worth 500 billion forints, which is far from the bubble situation and reflects realistic bank expectations, according to Marble Bank experts. According to the same study, 30% of those eligible for CSOK would buy used homes in the next year and a half, while 9% plan to buy new ones.

If you are looking for a loan to buy a home and would like to negotiate with the banks as an equal partner and do not want to fail with the repayment agent, consult with Pinocchio’s credit broker! We’re on your side!
Our staff will find the construction that best fits your purpose, be it CSOK 10 + 10, supported home loan, LTP or even NOK.

Credit Trap – No Way Out

Inadequate borrowing and unexpected exchange rate fluctuations have driven many people into the trap of the debt trap, which does not seem to lead the way.

Hungarian law is painfully lacking in the institution of private bankruptcy similar to that of corporate bankruptcy.

If a company is in financial difficulty, you can apply for bankruptcy protection. During bankruptcy protection, creditors must agree with the bankruptcy petitioner who, during this time, attempts to straighten out a redundant supervisor by getting rid of unnecessary things. Streamline your costs, expenses, and revenue.

If this fails, the company will be wound up after the stipulated time, and creditors will only be compensated for the remaining assets.


The business owner is not liable for any further repayment of the loans

The business owner is not liable for any further repayment of the loans

The institution of private bankruptcy, which has been available in many parts of the world for decades, works like this to relieve trapped debtors of the pressure of executives for a temporary period, bringing their finances under the supervision of a seconded caretaker. The caretaker monitors that the debtor does not borrow, rationalizes his expenses, sells his assets for sale and clears his creditors.

If the creditors are not satisfied during the transitional period, enforcement may come. (This is the same as winding up in the life of a company.) The money they make goes to the creditors and the debtor can start a new life. Your liability for this current situation would be limited in time.

Private bankruptcy is a lengthy and often expensive process, but in the end, the person concerned, like companies, can be relieved of their credit in a few years.

What is important to emphasize is that private bankruptcy is not a credit waiver, but an agreement between the lender and the lender, which presupposes full cooperation between the debtor.


“free pass” right for secured loans

"free pass" right for secured loans

This means that the borrowers of covered loans (typically real estate mortgages) will be free of any further charges after the foreclosure. The rationale for this provision is that the bank must be satisfied with the ownership of the collateral it has requested. Nothing prevented him from seeking additional collateral before disbursing the loan, he stated that the value of the collateral was sufficient.

In contrast to these practices, today, in Hungary, a borrower with a mortgage can find himself in a credit trap for the rest of his life. The loan does not expire, and they can take most of their salary or pension for the life of the debtor. In most cases, the amount deducted from your salary is enough for the executive fee and interest, often not even that. So you have no prospect of getting rid of the consequences of a bad decision once, except for emigration from the country.

Unfortunately, more and more people are moving and moving further afield to start their lives again. Therefore, it would be important for debtors to have some hope and prospects of getting out of credit. Even if the murder is time-barred, the debt would have to be put on a maximum term.

Therefore, in the long run, banks would also be interested in the introduction of private bankruptcy, as at present debtors are merely hiding from enforcement and often do not cooperate with the banks in any way because they are not gaining any money.

Of course, in the case of a private bankruptcy, often only 20-30% of the loan is repaid, but this is still more than what banks sell to debt collection companies.


Banks are protesting against private bankruptcy

Banks are protesting against private bankruptcy

Arguing that this would trigger a further wave of insolvency among debtors who would perceive the private bankruptcy as another bailout and reduce their willingness to pay.

There is truth in this reasoning, as it would be important to determine how long the debtor has to stand up for the loan and work with the chartered supervisor. In most countries, this stage is between 3 and 12 years, typically 3-5 years.

Despite the problems surrounding the introduction, it is important to find a solution that is reassuring to everyone as soon as possible, given the large number of stakeholders and the total disarray.

Do you need real financial advice, are you tired of agents? Click the link for more information.

Security in Focus on Home Loans

More recent data have come to us regarding home loans. In fact, we are not surprised that the credit market continues to grow, and we continue to surpass previous numbers. Truth be told, we can’t imagine the growth right now when the Family Protection Action Plan comes into effect. But let’s not run this far, let’s see what happened in the first quarter!


Very large numbers follow

home loan

We found some interesting data on the MNB’s website. ? In the first quarter of 2009, the Hungarian population borrowed more than HUF 200 billion. In just 3 months. Otherwise, this is about 18 percent higher than in the same period of 2018.

As of March, new home loans exceeded HUF 76 billion . This also pushes up the quarterly figures, as in March 2018 there was about 26 percent less new loan outsourced.

Within mortgages, fixed loans are the ones that the Hungarian population prefers. Of these loans, approximately 118 billion were selected, representing an increase of more than 194 percent over 2018. This is understandable, as in the second half of last year the MNB started to direct the population towards these loans. But why is this good?


About fixed loans

About fixed loans

The distinct advantage of choosing a long period of interest is that despite the fact that different interest rates rise (such as the central bank base rate), the repayment of our loan does not change . For a floating rate (3 month interest rate) loan (HUF 10 million for 20 years) it costs HUF 51,828 per month at LifeKorp Bank, and HUF 58,459 for a 5 year interest period.

As interest rates on loans have been low for quite some time, it is almost certain that interest rates will rise in the next 5 years. But not for those who are now taking the extra $ 7,500 for security.

Do you want to do well not only in the short run but also in the long run? Then contact us! We will help you find the optimal solution.